Tesla’s stock took a hit on Tuesday, dropping 3.3% in premarket trade despite news that its energy storage gigafactory in Shanghai has begun trial production. This is expected to transition into mass production early next year.

However, this decline is not isolated to Tesla alone. The broader tech market is experiencing a rout due to concerns about the pace of Federal Reserve interest rate cuts in 2025. The electric car maker’s stock continues to be closely tied to the actions and statements of its billionaire founder Elon Musk.

Elon Musk’s Controversial Remarks

Musk, who has been involved in several high-profile controversies recently, claimed that he would "go to war" with the MAGA movement over skilled migrant visas. He also vowed to kick out any "hateful, unrepentant racists," marking the latest in a series of provocative statements.

H-1B Visa Programme

Musk’s most recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. ‘Take a big step back,’ Musk said, as he launched an attack on critics of the programme.

The world’s richest man, who himself came to the US from South Africa on an H-1B visa, defended the programme as vital to America’s success. ‘The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H-1B,’ Musk wrote on X.

Tesla Stock Performance

Despite the controversy surrounding Musk’s comments, the stock has jumped around 68% for the year-to-date. This indicates that investors are willing to overlook his statements in favor of the company’s overall performance and future prospects.

Sangamo Therapeutics (SGMO)

Sangamo Therapeutics took a significant hit on Tuesday, dropping almost 50% in premarket trade following news that pharma giant Pfizer is ending its partnership with the drug developer to make a new gene therapy for haemophilia A.

Pfizer’s Decision

The move by Pfizer comes despite the fact that the drug had met its goals in a late-stage trial. Sangamo said it is assessing "all options" to continue making the drug. The company was planning to file for US and European approval early next year.

This decision by Pfizer raises concerns about the future of gene therapies and the partnerships between pharma companies and biotech developers. It remains to be seen how this will impact the market and the performance of Sangamo’s stock in the long term.

Bitcoin (BTC-USD)

Bitcoin ticked cautiously higher on the final day of the year after a rollercoaster 12 months that saw it smash through previous all-time highs.

Volatility

The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets. Over the last month, the asset has been volatile – heading to all-time highs past the $106,000 mark.

Crypto Industry’s Expectations

The recent surge in Bitcoin’s value is largely due to expectations surrounding the incoming pro-crypto cast of advisers under US president-elect Donald Trump. During the election cycle, Trump made several pledges in line with boosting the crypto industry.

National Bitcoin Reserve

One such pledge was to build a national bitcoin reserve for the US. He also vowed to sack the crypto critical US Securities and Exchange Commission (SEC) chair Gary Gensler, with Paul Atkins, CEO of Patomak Partners and a former SEC commissioner, lined up to replace him.

Atkins is known as a friend of the crypto industry and will likely be a softer touch on regulation. Meanwhile, Trump appointed former PayPal executive David Sacks as the first crypto and AI tsar.

Crypto Adoption

Sacks has previously argued that opening the doors to crypto adoption would spur on growth and encourage innovation. This is in line with many experts who believe that mainstream adoption of cryptocurrencies is crucial for their long-term success.

Endeavour (EDV.L)

Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback.

Share Buyback Programme

The transaction will involve the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme. The company said it was making the move in order to optimise its capital structure.

This is good news for investors who have been holding onto their shares. A share buyback can help boost the stock’s price and increase investor confidence in the company’s future prospects.

Market Trends

The FTSE 100 (^FTSE) has seen a mixed performance over the past few months, with some stocks performing well while others struggle to keep pace.

• The tech sector has been particularly volatile, with many stocks experiencing significant price swings due to changing market conditions and regulatory concerns.
• However, some companies have managed to buck this trend and post strong gains, driven by innovative products, expanding markets, and solid financials.
• As we head into 2025, investors will be watching closely for signs of a rebound in the tech sector and other areas of the market.

Conclusion

The past few months have seen significant fluctuations in the stock market, with some stocks performing exceptionally well while others struggle to keep pace. As we move forward into 2025, it’s essential to stay informed about market trends, regulatory changes, and company performance.

By doing so, investors can make more informed decisions and potentially reap the rewards of a successful investment strategy. Whether you’re a seasoned investor or just starting out, staying ahead of the curve is crucial for achieving long-term success in the stock market.